Dec. 28, 1994 12 AM PT. Despite China being a great market for Israeli technology and products and Israel-China relations having been rather cordial . Advertisement. The Chinese government met with senior Hamas representative Mahmoud al-Zahar, who previously served as Palestinian foreign minister, during the June 2006 China-Arab Cooperation Forum in Beijing which held direct bilateral talks despite protests from Israel and the United States. [84], In March 2015, Israel joined China's newly constituted Asian Infrastructure Investment Bank (AIIB), becoming a founding member of the institution postulating that Israel may become a major economic ally of China. The declaration by the leaders on the technological partnership will be put to the test in its implementationthe success of both National Security Councils, not only in launching processes leading to actual progress in fields of technological cooperation, but also in reinforcing the strategic relations between Israel and the United States, Israels great ally. This group should include a consultative structure led by the White House and the U.S. State Department with the Israeli Prime Minister's Office and Ministry of Foreign Affairs to address differences . Israel's January . For information on reprint and reuse permissions, please visit www.rand.org/pubs/permissions. Although China may see Israel as more lenient than the U.S. in sharing technology, Israel may ultimately act similarly cautiously as it does not . 2000 was the year that saw the most new Israeli listings on the exchange - 33 companies. [4][5][6] Israel maintains an embassy in Beijing and is planning to open a new consulate in Chengdu, its third in Mainland China. China's venture capital investments in Israel amount to approximately US$1.77 billion and are concentrated in the tech sector; in 2015 alone, China invested about US$500 million in Israeli startups. Performance & security by Cloudflare. American fears of espionage led to the Israeli governments reassessment of Chinas successful bid to operate the country'sbiggest port in Haifa, which regularly hosts visits fromU.S. Navy ships for bilateral exercises and port calls. Data on Chinese investments in Israeli technology and infrastructure are not systematically collected, and more research is needed to capture the full extent of Chinese access. The U.S. has often cited Chinas alleged theft in the mid-2000s of data related to the F-35, the stealth fighter aircraft, as a prime example of this objective. [137][138][136], On July 23, 2014, China was among the 29 nations who voted in favor of the investigation by the United Nations Human Rights Council of war crimes committed by Israel during Operation Protective Edge, with the United States being the only nation in dissent. [65] Due to Israel's recognition of China, Israel has also limited its cooperation with Taiwan in order to foster closer ties with Mainland China. In February this year, Israel had uncovered a nexus . 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Xi called on both countries to enhance political communication, synergize development strategies, and strengthen cooperation in key areas such as . [23], China and Israel secretly began building military ties in the 1980s during the SovietAfghan War, which both Israel and China opposed. The China-Israel wiki seems to show relatively friendly relations. It appears, however, that the top issue in United States foreign policy, the strategic competition with China, was barely referenced. Washingtons pressure on Israel focused on halting Chinas involvement in Israeli infrastructure, blocking Chinese-made infrastructure in 5G communications in Israel (which was not on the agenda in any case), investment screening, and hindering technology transfers. RAND is nonprofit, nonpartisan, and committed to the public interest. There are more than 1,000 Israeli firms operating in China as of 2010. Israel's foreign-investment screening mechanism seemed to be working. According to him, Beijing steals $200 billion to $600 billion worth of economic secrets from the U.S. annually. What aspects of Chinese investment into Israel merit further investigation and research? The former is a belated American response to Chinas strategic Belt and Road Initiative (BRI) for infrastructure, which was launched in 2013. They reached several high-level agreements, including a $1 billion Israeli-Russian sale of military aircraft to China. As of 2011, some sixty Israeli companies are listed on the Nasdaq. Drawing upon decades of experience, RAND provides research services, systematic analysis, and innovative thinking to a global clientele that includes government agencies, foundations, and private-sector firms. ExAblate: InSightec. Xus case is just the tip of the iceberg of the thriving Chinese commercial and technological espionage. [40][15] Jews remain a small minority in China, but unlike many parts of the world, Jews have historically lived in China without any instances of antisemitism from the Han majority populace contributing to mutual respect and admiration between the two peoples. Catherine Leung discusses opportunities for collaboration between China and Israel's tech industry. Washington's pressure on Israel focused on halting China's involvement in Israeli infrastructure, blocking Chinese-made infrastructure in 5G communications in Israel (which was not on the agenda in any case), investment screening, and hindering technology transfers. February 13, 2023 The authors examine the extent and nature of Chinese investments in Israeli technology and infrastructure and discuss the security implications these pose for Israel and the United States. Since then, the annual growth in trade has averaged 40%. The second paragraph (in the text issued by Washington) pledges to boost our mutual innovation ecosystems, to deepen bilateral engagements, advance and protect critical and emerging technologies in accordance with our national interests, democratic principles and human rights, and to address geostrategic challenges, i.e., not merely economic or scientific challenges. The Israeli ban on exporting defense technologies to China goes back to 2000, when intense American pressure led Israel to cancel the sale of the Phalcon Airborne Early Warning System to China. "Israel sees China as an opportunity," said Michael Oren, a former Israeli ambassador to Washington. [64], China and Israel have developed close strategic military links with each other. David Ivri, the director-general of the Israeli Defense Ministry, admitted on Jan. 3 that Israel had sold China "some technology on aircraft" but added that it was not U.S. technology and that the contracts were "very small in magnitude." [32] On Jan. 6, Aded Ben-Ami, the spokesperson for Prime Minister Yitzhak Rabin, again denied that . In light of Washingtons limitations and threats, the Netanyahu governments chose to proceed gingerly and avoid trouble by employing moderate measures to assuage US anxiety somewhat, while continuing to advance ties with China, except in security, defense, and other sensitive areas. China has not even spared its strategic partners from such commercial espionage. At the same time, Jerusalem and Washington will strive to further fruitful and safe relations with China, an important economic partner of both countries, as of many others in the region and the world. [59], As part of the 2010 World Expo, the Shanghai Municipal Government began to allow the city's Jewish community to use the historic Ohel Rachel Synagogue for regular Shabbat services. [101][36] At present, there are thousands of Jewish and Israeli expatriate businessmen residing in various Chinese cities, mainly Shanghai and Beijing looking to do business with Chinese entrepreneurs and Chinese technology companies. Spread the word. 108.61.70.43 [113] In 2013, Li donated US$130 million to Technion. Please try again or choose an option below. [71] Israel is now China's second-largest foreign supplier of arms after Russia with China having purchased a wide array of military equipment and technology, including communications satellites. The Chinese consortium comprised a number of Chinese holding companies and private equity firms such as Giant Investment (HK) Limited, China Oceanwide Holdings Group Co. Ltd., China Minsheng Trust Co. Ltd., CDH China HF Holdings Company Limited, the Hony Capital Fund, and Yunfeng Capital a private equity firm co-founded by Alibaba's Jack Ma. While China does a lot of business with Israel, its international support for Palestine limits its political cooperation with the Jewish state. [130], Chinese involvement in the Israeli technology sector has also generated security concerns. [109] Recent high end deals include a Chinese donation of $130 million to Technion for a research center, Beijing winning a $2 billion tender to build the Med-Red railway linking Ashdod port with Eilat as well as a $1 billion Israeli port tender, a $300 million joint research center between Tel Aviv University and Tsinghua University, and Chinese acquisition of a controlling stake in Israel's Tnuva dairy company for more than US$1 billion. [98] Several factors that contributed to the surge of Chinese investment in Israel including a surplus of money among Chinese conglomerate companies and wealthy individuals, a preconceived and favorable notion of Jews as being extremely smart and are blessed with great intelligence, and the warm welcoming reciprocation of China by Israel itself. And what about Israel? February 1, 2023 However now as Prime Minister, Bennet finds himself in a pickle. China Paradigm interviewed Rami Blachman, the founder of China Israel Innovation Accelerator and business advisor at AgriNation Venture Capital, to have a comprehensive knowledge of Israeli technology companies in China, to best identify the emerging markets in China, and to look into the market strategies in various Chinese cities.. Rami Blachman, bringing Israeli technology companies in China The Sino-Israeli relationship is particularly complex. It is suspected and expected that a some of Irans nuclear technology originates in China, directly or through Pakistan. It takes just a few seconds. Knowledge at Wharton Staff. Despite China being a great market for Israeli technology and products and Israel-China relations having been rather cordial, Israel does realize that it cannot continue to sit on the fence. Once registered, youll receive our Daily Edition email for free. Chinese investments in Israel have grown substantially and include investments in high-tech companies that produce sensitive technologies as well as the construction and operation of key infrastructure projects. [68], Events in Tiananmen offered an additional incentive for military relationship, funded in Israel's reputation as a reliable arms supplier. [11] Convergence of interests has made them natural partners. The China-Israel Innovation Hub was established in December 2019 as a major step in Shanghai's implementation of a national strategy to promote Chinese and Israeli scientific technological innovation. TIMES STAFF WRITER. The 13-year-old Haifa company has developed a futuristic technology called ExAblate, a non-invasive, magnetic resonance-guided focused ultrasound surgery system that thermally ablates, or destroys, tumors inside the body. [135], On November 29, 2012, China voted in favor of UN General Assembly Resolution 67/19 Palestine to non-member observer state status in the United Nations. Sino-Israeli trade stood at almost $15.3 billion in 2018, 14 an over 4,200 percent increase in real dollar terms since 1995. Instead of limits and threats by one side and tiptoeing by the other, Israel and the United States agreed to elevate their partnership, adapting it to challenges of the 21stcentury and the era of Great Power competition, with technology at its core. In 1950, Israel was the first country in the Middle East to recognize the PRC as the legitimate government of China. China and Israel's cooperation in technological innovation is highly complementary, said Zhao Dongliang, director of the Changzhou Israel Innovation Park, the first experimental zone for innovation cooperation established by the two governments. [88], In 2009, China Radio International (CRI) began broadcasting in Hebrew. In an August 4 The Jerusalem Post article titled "Taiwan, US, China - what is Israel's position?" former Israeli ambassador to China Matan Vilnai issued a stark warning to remain neutral . China is making its move from an commodity manufacturer economy to a high-tech one - and Israel is playing a key part. Owing to strategic Chinese rivalry with Japan, South Korea, the Philippines, India and Vietnam, as well as concerns over the security of Taiwan, the United States has pressured Israel against selling sophisticated equipment and technology to China. [123] China's record of proliferating arms and weapons systems has also concerned U.S. planners, as the U.S. worries that China may repackage advanced Israeli defense technologies for resale to America's rivals and nations hostile to it throughout the world. In November 2008, then China Ambassador to the United States Yesui Zhang stated that the "continued construction of settlements on the West Bank is not only in violation of Israel's obligations under international law, but is also detrimental to guaranteeing Israel's own security." The largest number of investments is in companies in the life sciences sector (these include medical technologies, biotechnology, biochemistry, and pharmaceuticals - 122 deals in all), followed by investments in software development and IT companies (108 deals); China also invests in companies in the internet . Since the 1980s, Israel has carefully walked the U.S.-China technology tensions tightrope, trying to balance its commercial and security interests with the two great powers. Amid a rift with the U.S. over Israeli sales of military technology to China, Israel adopted defense export restrictions in 2006. The group targets data and organizations which are of great interest to Beijings financial, diplomatic and strategic objectives. The espionage takes place while Chinas Belt and Road Initiative and the Chinese government formally declare Israels technology sector as a key area of mutual interest. Israel firms are an attractive espionage target as theircutting-edge technologiesareused by many major powers. [119] On October 2, 2017, the Chinese-owned Israeli-based mobile gaming development company Playtika Ltd. agreed to acquire Israel's Jelly Button Games Ltd. looking to expand its offerings into the casual-game space for an undisclosed sum. [29][30], In May 2020, the Chinese ambassador to Israel, Du Wei, was found dead at his home in Herzliya. China's then Foreign Minister Li Zhaoxing called the Israeli West Bank barrier wall an obstacle to peace in a September 2006 statement during a UN Security Council meeting on the Middle East. According to the U.S. National Security Agency, China repeatedly breached the computer networks of the American government and private defense companies to steal data about design and radar modules for the F35 and incorporated it into its stealth fighter aircraft, the J20. On November 5, 2021, a federal jury in Cincinnati determined that Xu was guilty of conspiring to and attempting to commit commercial espionage and stealing trade secrets from the U.S. Xu is the deputy division director of the Sixth Bureau of the Jiangsu Province of the Chinese Ministry of State Security, the primary intelligence agency of the Chinese Communist Party (CCP). [99] His was the largest donation ever made to Technion and one of the biggest to any Israeli academic institution. Is That a Good Thing? "The basic research of industries in Israel is better, and the country emphasizes core technology . In the wake of the United States and China's phase one trade deal, the latter is quietly trying to strike an agreement of its own with Israel. The government of The People's Republic of China (PRC) and the government of the State of Israel signed a bilateral agreement in 2010 to form the China-Israel Cooperation Program for Industrial R&D with the primary aim of supporting joint industrial R&D projects aimed at the development . Cloudflare Ray ID: 7a1523040d638c6c [11][51][13], In November 1991, the Defense Minister of Israel Moshe Arens was reported to have paid a secret visit to China and believed to have negotiated the establishment of ties and expansion of military cooperation. 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